Dotcom Secrets From Russell Brunson! What Is A Value Ladder?August 20, 2020
Hi, today I want to share with you a book that helped me a lot in managing my personal brand: Dotcom Secrets From Russell Brunson.
Before sharing the content of the book with you, I want to share with you the difficulties I have in running my personal brand and how Dotcom Secrets helped me.
To briefly introduce, I have been running a youtube channel for 3 years.
A year ago, my channel had about 30,000 subscriptions.
At that time, I started to have some ideas. I wanted to “monetize” the traffic on the channel.
I follow some internet articles and books to make a mini product under my own exploration and then successfully sold it.
But after the product was successfully sold, I was a bit worry because I don’t know how to increase the sales of the product.
I tried to increase the traffic. I put my product link under many videos, but the sales did not increase.
I took out the data and analyzed it. In some months, my product sales page views doubled, but the product sales did not change at all.
Until recently I re-read the latest version of Dotcom Secrets, re-examined my products, and improved them, which actually increased my conversion rate by 70%.
This reminds me of a classic sentence in the Dotcom Secrets book: “Many people think they have traffic problems and conversion rate problems, but these are actually not problems. The real problem lies at a more fundamental level.”
Let me share with you what I learned in Dotcom Secrets and some of my insights during this period.
There are 4 main points:
- Value ladder
- Hook, Story, Offer
- Traffic Temperature
- Funnel hacker
Does your business have a value ladder?
Dotcom Secrets mentions a very special thing called Value Ladder.
What is the Value Ladder?
What he means is that you have to have products at different price points, and these products at different price points are interrelated.
Using the chart to illustrate, you can see that products with lower prices provide lower value, while products with higher prices provide higher value.
The book uses a dentist as an example. The value ladder of a dentist might look like this:
The first level of the Value ladder is a free dental cleaning, the second level is whitening, and the highest level is cosmetic.
Your career goal is to allow customers to climb up layer by layer.
As you provide them with more value, customers will pay you more money.
Then take the book author Russell Brunson’s Internet company as an example.
His lowest-level product is the Secrets series of books, followed by the click funnel software, and the top one is the one-to-one consulting service.
One thing to note here is that you don’t just put things at different price points together and call it a value ladder.
Each product on Value Ladder must be able to help customers achieve the same core goal, that is, value ladder mission statement (VLMS), so that it can be regarded as a complete Value Ladder.
Take the previous dentist as an example. Its core goal is to let clients have beautiful teeth:
Take Russell Brunson’s Internet company as an example. His core goal is to allow entrepreneurs to grow their careers through the sales funnel and make more money online.
You might think: “After drawing the ladder, how can I have so much time to get so many products?”
An unexpected answer is given in the book: “First make one of the products to a scale of tens of millions, and then get other products.”
This is contrary to our ordinary people’s imagination of personal brand.
In the beginning, we will think: We must first have traffic, fans, provide a bunch of free things and then think about how to make a profit.
But usually doing this will be very confusing later, because you don’t have a core way of profiting.
Because I didn’t have a strategic map of “Value ladder” in my mind at that time.
When I knew this concept and looked back at my channel, I realized that my business in the past was really messy.
But when I drew the value ladder, I quickly knew how I would develop in the next step, and that the number of fans was actually not important.
Hook, Story, Offer
Another core framework mentioned in Dotcom Secrets is “Hook, Story, Offer”.
The key to this Hook, Story, Offer framework is that everything you see on the Internet, such as FB posts, IG posts, YouTube videos, and sales pages, etc., can actually use Hook, Story, Offer framework to resolve.
If you always look at the course sales page on FB, you will find the first slogan is “Hook”. The function of Hook is to stop you and make you want to keep watching.
Next, it will talk about the story of this course, here is the “Story” part.
In the end, the details and prices of the course will be revealed. This is the “Offer” part.
These 3 parts actually correspond to the 3 problems of online sales:
- If you have traffic problems, it means that your Hook is not doing well enough to attract others
- If you have a conversion rate problem, it means that your story is not good enough, and the story has no way to resonate
- If you can’t make money from selling something, then the offer is not doing well enough, and there may be a problem with your product design
As for how to master this “Hook, Story, Offer” framework, the book suggests starting with an offer first.
The way to make an offer is very simple. You can brainstorm and think about what you can give your customers to help them achieve their goals.
The book uses a babysitter as an example. In addition to simply taking care of the child, what special services can a babysitter provide to parents?
In the book, for example, a babysitter can wash dishes, clean the home, and then read stories to children, and don’t use electronic products when bringing children.
After the brainstorming, the next step is to stack up these things that can be done, and mark the value at the back.
After stacking in this way, even if the final price is relatively high, the entire Offer will still be more attractive than the initial “4-hour babysitting service”, and it will make customers feel that they must buy it.
At the beginning of the article, I mentioned the story of the increase in sales of my products.
In fact, the way I improved was to change the offer of my product.
I added a lot of bonus products that students can learn more smoothly to enhance the value of the overall product.
When customers can feel the value of what they buy, they will definitely pay!
Master Traffic Temperature
Dotcom Secrets mentioned a very good concept, that is, do not treat all traffic as the same, you should split the traffic into different stages, namely cold traffic, warm traffic, and hot traffic.
- People in cold traffic will be interested in “problems”
- People in warm traffic will be interested in “methods” to solve problems
- People in hot traffic will be interested in “products” that can solve problems in a certain way
When you are facing people with different traffic, you will need to use different communication methods.
Just take weight loss as an example. A person must first realize that “overweight” is a problem before looking for ways to lose weight, and finally, find products that can help him lose weight.
If he hasn’t realized that his “overweight” is a problem, then it’s useless to sell weight-loss products to him because he is still in the cold traffic stage, but you communicate with him in terms of heat traffic. Of course, It doesn’t work.
A good way is that you have to guide him step by step, first let him realize that “overweight” is a big problem, then he may move on to the next stage, find ways to lose weight, and then find the weight loss products you provide.
Some health issues can also follow the framework of this framework.
My dad smoke after I was young, and our family often told him to quit smoking, but he didn’t.
One day, he went to join a group to quit smoking, the doctor’s just show him a lot of pictures of patients with lung cancer.
My dad was shocked. When my dad started to realize smoking is really a problem, he would make further changes and move on to the next stage.
If you really don’t know what product you want to make a profit, what should you do?
Dotcom Secrets proposes a great approach called “Funnel hacker”, that is, you first buy other people’s products.
In addition to buying products that have been successful in the market, but also buying competitors’ products.
What’s the use of buying? Of course, it is to buy back and study, and then try to understand the overall business structure of others.
What kind of hooks, stories, and offers do others use when selling their products?
This was very counter-intuitive to me at first, because I used to think that when I bought something from someone else, it meant that I had given up.
Later, I learned the concept of “Funnel hacker” that I let go of my persistence and realized that I was actually going to buy other people’s products.
Buying does not mean that I am weaker than others. Instead, I have to buy and study what tricks the sales process is.
With the concept of “Funnel hacker”, you will want to understand the profit model of others on the surface.
Many Internet businesses are like icebergs. Most people can only see icebergs on the water, but you have to pay for other people’s products to know how deep the icebergs are, and these parts of the water are where the real profit occurs.
Taking a YouTube with the same 100,000 subscriptions as an example, according to their underlying business structure, there may be completely different levels of profit.
It’s a pity that most people and most viewers only care about the “number of subscriptions”.
They think that more subscriptions mean more profitable but this is not true.
The above is a simple sharing of some content of this Dotcom Secrets, I hope it will give you some ideas and inspiration.
The content of this book is really solid. If you really want to share it, I may have to write 10 articles to explain.
In addition, generally, the books on the market are old editions. In 2020, the author has refurbished and rewritten the books, adding many new contents.
Therefore, if you want to buy it, you have to go to the official website of Dotcom Secrets for the latest version.
I personally feel that the latest version has a lot more content and the structure has become more complete.
In addition, this Dotcom Secrets is just the first book of Russell Brunson’s Secrets Trilogy.
The second part of this series is “Expert Secrets”, which talks about how to increase conversion rates through story marketing.
The third part is “Traffic Secrets” which talks about how to get more traffic.
I have written the articles for both of the books. if you are interested, you can check it out:
If you want to expand your career on the Internet, these 3 books will greatly help. I sincerely recommend them.
If you have any questions about that, please leave it below. I’d love to hear that.